London 29/06/2016 - Base metals ended Wednesday trading on the LME in positive territory, with many hitting multi-week highs while concerns surrounding global growth following UK's vote to exit the EU subsided, traders said.
Still, over the coming weeks, "volatility is likely to reign as there are still many hurdles to face" until global economic trends and European geopolitical trends become clearer, a trader said.
"Though the initial panic has somewhat subsided, it will take time for investors to digest the news fully," another trader said.
Metals have proved relatively resilient since last week's referendum result. Their initial dip was insignificant so the subsequent influx of risk-appetite flows on Tuesday helped lift base metals prices to multi-week highs.
Economic releases today have seen the German GfK consumer climate index for June - assessed before the Brexit vote - at 10.1 against a forecast 9.8.
From the US, the core PCE price index came in as expected at 0.2 percent, as did personal spending at 0.4 percent. But personal income disappointed at 0.2 percent as did pending home sales at -3.7 percent. Crude oil inventories came in lower than expected, pushing oil prices above $50 per barrel.
European political developments from the EU Brussels meeting and important end-week data events are likely to add to 'news-flow' price turbulence. On Friday, attention switches to the usual round of global PMIs that kick off with China's two indicators.
In the metals, copper hovered around the $4,800 per tonne level throughout the session - it was last indicated at $4,838.00/4,838.50, up $20 on Tuesday's close and its strongest since May 5. Warehouse stocks rose a net 1,250 tonnes to 194,200 tonnes.
Fewer than 14,000 lots changed hands on Select by the kerb close.
"Tomorrow should see a more active session given that it is the end of the quarter and some repositioning by funds could be in order," INTL FCStone analyst Edward Meir said.
Aluminium ended at $1,635.50, up $11.50; stocks fell 6,700 tonnes to a fresh low since January 2009 at 2,393,600 tonnes.
Nickel at $9,440 was up $100 and at its highest since May 5. Inventories continue to decline - they were down 798 tonnes at 380,286 tonnes, the lowest since late-October 2014.
Zinc climbed to its highest since June 9 and was last $14 higher at $2,089. Inventories were 2,350 tonnes lower at 426,225 tonnes.
Lead at $1,770 was $36 higher and its highest since May 12 while inventories rose 900 tonnes to 186,250 tonnes. Tin at $17,095 was up $195 after stocks fell 25 tonnes to 6,060 tonnes.
Steel billet was last indicated at $300/325 and cobalt and molybdenum at $23,500/24,000 and $16,500/17,000 respectively, with no inventory movements.
(Additional reporting by Martin Hayes, editing by Mark Shaw)